by The data center cooling market has gained a significant momentum in recent years, owing to the rapid growth of data centers across various industries including BFSI, IT & telecom, healthcare, and media & entertainment. The need for seamless data center operations and efficient thermal management systems has also augmented the demand for advanced cooling solutions in the industry. Key players operating in the data center cooling market are designing and launching innovative products to cater to the evolving needs of data center operators.
Data center cooling systems are critical infrastructure used to maintain optimal operational temperatures in data centers to ensure high performance and efficiency of critical IT equipment such as servers, network devices, and storage systems. Various cooling techniques adopted by data centers include air-based, liquid-based, and immersion cooling systems. Data center operators are increasingly focusing on deploying energy-efficient cooling infrastructure with lower carbon footprints.
The Global data center cooling market is estimated to be valued at US$ 32.91 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the data center cooling market are Air Enterprises, Asetek, Inc., Climaveneta, Coolcentric, Daikin Industries Ltd, Dell Technologies Inc., Fujitsu, Hitachi, Ltd., Johnson Controls, Liquid Cool Solutions Inc., Mitsubishi Electric Corp., Munters Group AB , Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG, Schneider Electric SE, STULZ GMBH, Telx Inc., and Vertiv Co.
Key opportunities: Growing Data Center Cooling Market Size demand for edge data centers and adoption of high-performance computing present significant opportunities for manufacturers to develop technologically advanced cooling infrastructure catering to diverse workload capacity and power requirements. In addition, the increasing focus on adoption of renewable energy-based cooling systems also opens up new opportunities in the market.
Global expansion: Major data center cooling vendors are strengthening their global footprint through partnerships, acquisitions, and expansion of manufacturing facilities across fast growing markets in Asia Pacific and Middle East & Africa. Rapid infrastructure development and increasing digitization programs in developing nations will further augment the global demand for optimized data center cooling solutions over the next decade.
Market drivers: The growing rack power density within data centers requiring higher cooling capacities is a major market driver. Additionally, stringent government regulations regarding energy-efficient data center operations and carbon emissions reduction targets are compelling enterprise organizations to adopt advanced cooling infrastructure, thereby propelling the data center cooling market growth.
PEST Analysis
Political: Data center cooling regulations play an important role in the market. Regulations regarding energy efficiency standards and environmental emissions can influence data center designs and cooling equipment selection.
Economic: Growing data volumes and rise in hyperscale data centers are fueling demand. However, higher capital expenditure on advanced cooling solutions also increases operating costs for facilities.
Social: Since data centers power modern connectivity, operators face public and regulatory pressure to reduce environmental footprint through efficient cooling designs. Sustainable practices are important from a social perspective.
Technological: Advanced liquid cooling, direct-to-chip cooling through engineered fluids, and adoption of AI for predictive maintenance are some emerging technologies that can enhance energy efficiency. Compact modular cooling units also allow flexible capacity expansion.
The data center cooling market is concentrated in North America and Europe in terms of value, as these regions have a high density of data centers. The presence of many large public cloud and internet companies has resulted in explosive data center growth. Both enterprises and hyperscale operators are actively building new facilities and upgrading existing sites with advanced cooling solutions to support their digital transformation strategies.
Asia Pacific has emerged as the fastest growing regional market for data center cooling. This can be attributed to the rapid proliferation of cloud computing, IoT, and 5G-related applications driving data center investments in countries like China, Japan, India, and South Korea. The massive upcoming initiatives around smart cities and digital infrastructure are creating profitable opportunities for cooling system vendors and service providers to tap the rising demand from new data center builds.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
